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Haile Gold Mine Project

NI 43-101 Technical Report

Feasibility Study

Lancaster County,

South Carolina

10 February 2011

Prepared For:

M3PN090089

February10,2011

M3Engineering&Technology Corporation 2051West SunsetRoad,Tucson,AZ85704 520.293.1

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HAILE GOLD MINE PROJECTNI 43-101FEASIBILITY STUDY

M3-PN09008910 February 2011

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TABLE OF CONTENTS

SECTION PAGE

NI 43-101 TECHNICAL REPORT ON THE HAILE GOLD MINE PROJECT

1 EXECUTIVE SUMMARY ...................................................................................................... 11.1 TITLE PAGE .................................................................................................................... 11.2 TABLE OF CONTENTS..................................................................................................... 11.3 SUMMARY (SYNOPSIS) ................................................................................................... 1

1.3.1 Key Data ..................................................................................................... 11.3.2 Scope ........................................................................................................... 31.3.3 Property and Location ................................................................................ 41.3.4 Site Layout .................................................................................................. 41.3.5 Infrastructure ............................................................................................... 61.3.6 Ownership ................................................................................................... 61.3.7 Geology ....................................................................................................... 71.3.8 Mineral Resources and Reserves ............................................................... 71.3.9 Mining ......................................................................................................... 81.3.10 Metallurgy and Process Plant ................................................................... 121.3.11 Tailing Facility.......................................................................................... 131.3.12 Environmental and Permitting ................................................................. 131.3.13 Capital Costs ............................................................................................. 141.3.14 Operating Cost .......................................................................................... 141.3.15 Economic Analysis ................................................................................... 141.3.16 Project Execution Plan ............................................................................. 171.3.17 Authors Conclusions ............................................................................... 17

1.4 INTRODUCTION &TERMS OF REFERENCE................................................................ 181.4.1 Purpose ...................................................................................................... 181.4.2 Sources of Information ............................................................................. 181.4.3 Terms of Reference .................................................................................. 181.4.4 Units of Measure ...................................................................................... 19

1.5 RELIANCE ON OTHER EXPERTS .................................................................................. 191.6 PROPERTY DESCRIPTION AND LOCATION ................................................................. 20

1.6.1 Property Location ..................................................................................... 201.6.2 Ownership ................................................................................................. 221.7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND

PHYSIOGRAPHY............................................................................................................ 241.7.1 Accessibility ............................................................................................. 241.7.2 Climate ...................................................................................................... 24

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1.7.3 Local Resources and Infrastructure ......................................................... 241.7.4 Physiography ............................................................................................ 24

1.8 HISTORY........................................................................................................................ 251.9 GEOLOGICAL SETTING ................................................................................................ 26

1.9.1 Regional Setting ....................................................................................... 271.9.2 Lithology ................................................................................................... 301.9.3 Structure .................................................................................................... 35

1.10 DEPOSIT TYPES ............................................................................................................ 361.11 MINERALIZATION ........................................................................................................ 37

1.11.1 General Characteristics ............................................................................ 371.11.2 Mineralized Zones .................................................................................... 38

1.12 EXPLORATION .............................................................................................................. 391.12.1 Prior to HGM ............................................................................................ 391.12.2 HGM Exploration Program ..................................................................... 40

1.13 DRILLING ...................................................................................................................... 401.14 SAMPLING METHOD AND APPROACH........................................................................ 43

1.14.1 Reverse Circulation Drilling .................................................................... 431.14.2 Diamond Drilling...................................................................................... 44

1.15 SAMPLE PREPARATION,ANALYSES,AND SECURITY................................................ 451.15.1 On Site Sample Preparation ..................................................................... 451.15.2 Off Site Sample Preparation .................................................................... 451.15.3 Analytical Determinations ....................................................................... 46

1.16 DATA VERIFICATION ................................................................................................... 461.16.1 HGM Data Verification ........................................................................... 471.16.2 HGM Drilling versus Historic Drilling ................................................... 521.16.3 Diamond Drilling vs. RC Drilling ........................................................... 541.16.4 Cyanide Soluble Gold Assays.................................................................. 55

1.17 ADJACENT PROPERTIES............................................................................................... 551.17.1 Ridgeway Mine ........................................................................................ 551.17.2 Brewer Mine ............................................................................................. 561.17.3 Barite Hill Mine ........................................................................................ 56

1.18 MINERAL PROCESSING AND METALLURGICAL TESTING......................................... 581.18.1 General ...................................................................................................... 581.18.2 Metallurgical Testing ............................................................................... 581.18.3 Mineral Processing ................................................................................... 72

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1.19 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE...................................... 761.19.1 Block Model ............................................................................................. 761.19.2 Mineral Reserves ...................................................................................... 871.19.3 Mineral Resources .................................................................................... 92

1.20 OTHER RELEVANT DATA AND INFORMATION .......................................................... 951.20.1 Potential Mineral Deposits (PMD) .......................................................... 95

1.21 INTERPRETATIONAND CONCLUSIONS....................................................................... 961.21.1 Risks and Opportunities ........................................................................... 97

1.22 RECOMMENDATIONS ................................................................................................... 981.23 REFERENCES................................................................................................................. 981.24 DATE AND SIGNATURE PAGE .................................................................................... 1001.25 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ONDEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES............................... 101

1.25.1 Mine Operations ..................................................................................... 1011.25.2 Tailing Storage Facility .......................................................................... 1351.25.3 Overburden Storage ................................................................................ 1371.25.4 Surface Geotechnical Investigation ....................................................... 1401.25.5 Water Diversion ...................................................................................... 1411.25.6 Water Balance ......................................................................................... 1411.25.7 Ancillary Facilities ................................................................................. 1421.25.8 Power Supply .......................................................................................... 1431.25.9 Environmental Considerations and Permitting ..................................... 1431.25.10 Marketing ................................................................................................ 1451.25.11 Royalties ................................................................................................. 1451.25.12 Capital Cost Estimate ............................................................................. 1451.25.13 Sustaining Capital Cost Estimate ........................................................... 1461.25.14 Reclamation Costs .................................................................................. 1471.25.15 Operating Cost Estimate ........................................................................ 1471.25.16 Taxes ....................................................................................................... 1491.25.17 Economics ............................................................................................... 149

1.26 ILLUSTRATIONS.......................................................................................................... 156

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LIST OF TABLES

TABLE DESCRIPTION PAGE

Table 1.3-1: Key Project Data .........................................................................................................2Table 1.3-2: Haile Mineral Resources as of 1 November 2010 .......................................................8Table 1.3-3: Haile Mineral Reserves as of 1 December 2010 .........................................................8Table 1.3-4: Mine Production Schedule ........................................................................................10Table 1.3-5: Mill Feed Schedule ....................................................................................................11Table 1.3-6: Initial Capital Costs ...................................................................................................14Table 1.3-7: Unit Operating Cost...................................................................................................14 Table 1.3-8: After Tax Financial Indicators at $950 Gold .............................................................15Table 1.3-9: Gold Price Sensitivity Before Tax.............................................................................16 Table 1.3-10: Gold Price Sensitivity After Tax .............................................................................17Table 1.3-11: Haile Key Pre-Production Milestones .....................................................................17Table 1.4-1: Terms and Definitions ...............................................................................................18Table 1.6-1: HGM Controlled Land within Permit Area as of December 8, 2010 ........................22

Table 1.16-1: Old Drilling vs. New Drilling, Statistical Comparison ...........................................53Table 1.16-2: DDH Drilling versus RC Drilling, Statistical Comparison .....................................54Table 1.18-1: Comminution Parameters ........................................................................................59Table 1.18-2: Bonds Rod and Ball Mill Work Indices for Haile Composite Samples .................59Table 1.18-3: Abrasion, Rod and Ball Mill Work Indices for Composite No. 83 and 84 Samples59Table 1.18-4: Whole-Ore Leach Test Results................................................................................60 Table 1.18-5: Flotation Test Results ..............................................................................................61Table 1.18-6: Flotation Test Results ..............................................................................................62Table 1.18-7: Flotation Tailing Leach Test Results.......................................................................63

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Table 1.18-8: Thickening and Filtration Test Summary ................................................................64Table 1.18-9: Test Results for Flotation and Flotation Tail Leaching ...........................................67Table 1.18-10: % Gold Recovery By Ore Zone and Ore Grade ....................................................68

Table 1.18-11: CIL Test Results for Fine Ground Flotation Concentrate .....................................69Table 1.18-12: Process Reagents ...................................................................................................71Table 1.18-13: Grinding Media .....................................................................................................72Table 1.19-1: Haile Gold Mine Block Model Location .................................................................76Table 1.19-2: Haile Model Indicator Estimation Parameters ........................................................85 Table 1.19-3: Haile Model Grade Estimation Parameters .............................................................86Table 1.19-4: Floating Cone Input Parameters to Guide Mineral Reserve....................................89Table 1.19-5: Feasibility Annual Schedule, Illustrating the Mineral Reserve ...............................90Table 1.19-6: Floating Cone Input Parameters for Resource ........................................................93Table 1.19-7: Mineral Reserves and Mineral Resources as of 1 December 2010 .........................94Table 1.20-1: Known Potential Mineral Deposits (Imperial Units) ..............................................96Table 1.25-1: Mine Production Schedule ....................................................................................102Table 1.25-2: Mill Feed Schedule ................................................................................................103Table 1.25-3: Overburden Allocation Storage Facilities .............................................................124Table 1.25-4: Work Schedule ......................................................................................................126Table 1.25-5: Mine Mobile Equipment .......................................................................................128Table 1.25-6: Hourly Personnel ...................................................................................................130Table 1.25-7: Mine Supervisory Personnel .................................................................................131Table 1.25-8: Mill Throughput and Maximum Mine Production (tpd) .......................................132Table 1.25-9: Recommended Mine Loading and Hauling Equipment Spread ............................133Table 1.25-10: Bench Heights .....................................................................................................134

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Table 1.25-11: Composite Statistics (Cutoff Grade 0.015) .........................................................134Table 1.25-12: Mine Permits .......................................................................................................144Table 1.25-13: Summary of Capital Costs ...................................................................................146

Table 1.25-14: Summary of Sustaining Costs (in $Millions) ......................................................147Table 1.25-15: Operating Cost Mine Site Cost Summary, Year 2 of Operation ......................148Table 1.25-16: Sensitivity Analysis .............................................................................................150Table 1.25-17: Cash Flow Model ................................................................................................152

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LIST OF FIGURES

FIGURE DESCRIPTION PAGE

Figure 1.3-1: Property Location Map ..............................................................................................4Figure 1.3-2: Overall Site Layout ....................................................................................................5Figure 1.3-3: Process Area Site Plan ...............................................................................................6Figure 1.3-4: Simplified Process Flow Sheet ................................................................................13Figure 1.3-5: Financial Sensitivities ..............................................................................................16Figure 1.6-1: General Location Map of the Haile Gold Mine .......................................................21 Figure 1.9-1: Gold Deposit Locations within the Carolina Slate Belt Local Geology ..................29Figure 1.9-2: Photo of Unmineralized Metasediments ..................................................................31Figure 1.9-3: Metavolcanic Unit ....................................................................................................32Figure 1.9-4: Schematic Geologic Map of Haile Property, May 2009 ..........................................34Figure 1.9-5: Folded Metasediments .............................................................................................36Figure 1.13-1: Drill Hole Location Map, Holes with Fire Assay ..................................................42Figure 1.16-1: Haile Standards vs. Fire Assay Gold in OPT (October 2010) ...............................49

Figure 1.16-2: Haile Blanks Gold OPT (October 2010) .............................................................50Figure 1.16-3: Alaska Assay Lab Internal Duplicates (2010) .......................................................51Figure 1.16-4: Alaska Gold Assays versus Chemex Check Assays ..............................................52Figure 1.18-1: Overall Percent Recovery vs. Head Grade .............................................................71Figure 1.18-2: Overall Process Flowsheet .....................................................................................74Figure 1.19-1: Variogram Structural Zones Haile Model ...........................................................80

Figure 1.19-2: Basic Statistics of 20 ft Composites by Rock Type and Variogram Zone (Zero

Values Have Been Removed) ................................................................................82Figure 1.19-3: Final Pits Before Reclamation ...............................................................................91Figure 1.25-1: Mine Production Schedule, Graphical Summary .................................................104

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Figure 1.25-2: $950/oz Floating Cone Guide to Final Pit ...........................................................106 Figure 1.25-3: Multiple Metal Price Cones On 400 Bench .........................................................107Figure 1.25-4: Phase Designs Extraction Sequence 400 Bench ............................................109

Figure 1.25-5: End of Preproduction ...........................................................................................112Figure 1.25-6: End of Year 1 .......................................................................................................113Figure 1.25-7: End of Year 2 .......................................................................................................114Figure 1.25-8: End of Year 3 .......................................................................................................115Figure 1.25-9: End of Year 4 .......................................................................................................116Figure 1.25-10: End of Year 5 .....................................................................................................117Figure 1.25-11: End of Year 7 .....................................................................................................118Figure 1.25-12: End of Year 10 ...................................................................................................119Figure 1.25-13: End of Year 12, Final Pit ...................................................................................120Figure 1.25-14: End of Mine Life ................................................................................................121Figure 1.25-15: Tailing Storage Facility Layout .........................................................................136Figure 1.25-16: Typical Cross Section of Tailing Storage Facility .............................................136Figure 1.25-17: Overburden Storage Areas Plan .........................................................................138Figure 1.25-18: Johnnys PAG OSA Area Plan ..........................................................................139Figure 1.25-19: Preproduction Site Wide Water Management Plan ...........................................141Figure 1.25-20: Sensitivity Analysis ...........................................................................................151

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LIST OF APPENDICES

APPENDIX DESCRIPTION

A Professional Qualifications

Certificate of Qualified Persons

Responsibility Qualified Person Registration CompanyProcess Plant Cost &Principal Author

Joshua Snider PE M3

Process & Metallurgy Thomas L. Drielick PE M3

Environmental & Permitting Lee Pat Gochnour MMSA G&A

Resources Modeling,Mine Planning, Reserves,Geology & Description ofPotential Mineral Deposits

John Marek PE IMC

Tailing, Overburden & SiteWater Management

Derek Wittwer PE AMEC

Companies Listed Above:

M3 Engineering & Technology Corporation, Tucson AZ (M3)Independent Mining Consultants, Inc., Tucson AZ (IMC)Gochnour & Associates, Inc., Parker CO (G&A)

AMEC Earth and Environmental, Denver CO (AMEC)

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1 EXECUTIVE SUMMARY

1.1 TITLE PAGE

This report is formatted according to National Instrument 43-101 - Standards of Disclosure for

Mineral Projects of the Canadian Securities Administrators. The first two items of this 26-itemoutline are the Title Page and Table of Contents. For ease of cross-referencing during review,the first two subsections of this report (1.1 and 1.2) are incorporated into this reports format.

1.2 TABLE OF CONTENTS

See Table of Contents on preceding pages.

1.3 SUMMARY (SYNOPSIS)

This section briefly summarizes the findings of the Haile Gold feasibility study. The proposedproject is an open pit gold mine that delivers sulfide ore to a 7,000 tpd (short tons per day)

grinding, flotation, cyanide leach, carbon handling and refining facility. The project is locatednear Kershaw, South Carolina which has a balance of remoteness and close proximity toinfrastructure. Over the life of the project, 1,678,000 ounces (troy ounces) of gold are projectedto be produced.

Haile Gold Mine, Inc. (HGM) selected third-party consultants that are well known and respectedin the industry. These consultants performed the design, engineering, reserve calculations, andenvironmental studies used for this report. All consultants have the capability to support theproject, as required and within the confines of expertise, from feasibility study to full operation.

M3 Engineering & Technology Corporation (M3), and other HGM consultants, developed more

than 200 drawings and completed feasibility-level design. The design and engineering effortprovided sufficient trade-off evaluation enabling immediate transition into basic and advanceddetail engineering without further significant analysis.

The Haile deposit will be mined using conventional open pit methods. Pre-stripping is planned tobegin in December of 2011 with the first ore scheduled to the mill in March of 2013. Annualhigh-grade ore production from the mine is 2.555 million tons and total material moved averages63,000 tpd with daily mill production averaging 7,000 tpd. Low-grade material between the millcutoff and a breakeven cutoff is stockpiled in years -1 through year 7 for a total of 4.9 milliontons, and this material is processed at the end of the mine life. The life-of-mine (LOM) strippingratio is 7.2:1 (overburden to ore).

1.3.1 Key Data

Key project data are presented in Table 1.3-1 including a summary of the project size,production, operating costs, metal prices, and financial indicators.

The financial analysis for the base case metal pricing provides an NPV of $191.1 million at a 5%discount rate, an IRR of 15.7% and a payback period of 4.8 years. The financial indicators are

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most sensitive to the gold price and gold grade. The base case assumptions and other sensitivityanalyses are summarized below and in the financial section at the end of this report.

Table 1.3-1: Key Project Data

Open Pit Mine Life (years) 13Milling of Low Grade stockpile (years) 3

Total Life (years) 14 (low grade processed in Year 14)Mine Type: Open PitProcess Description: Crushing, Grinding, Flotation, Cyanide LeachMill Throughput (Short tons per day) 7,000Initial Capital Costs ($US Millions) $275.5Sustaining Capital Costs ($US Millions) $119.2Reclamation Remediation Costs ($US Millions) $52.0

Payable Metals GoldAverage Ore Grade, Au (ounces/ton) 0.060Average Mill Recovery % 83.73Average Annual Gold (troy ounces) 126,000 (For 13.25 years)

First Year Gold (troy ounces) 173,000Average Annual Gold first 4 years (troy ounces) 155,000

Byproduct SilverGrade 1.5X the grade of goldRecovery 50%

Unit Operating Cost:Mining Cost per total ton material $1.25Mining Cost per processed ore ton $9.62Milling Cost per processed ore ton $7.67G&A per processed ton ore $2.26Refining Cost per processed ton ore $0.17

Total cost per processed ore ton $19.72

Total including $0.80 By-product Credit $18.92Average Cost Per Ounce of Gold:Operating Cost $379.27 (including refining & by product credit)Royalties Cost NA

Total Cash Cost $379.27

Metals Price assumptions: BaseCase

Low Case High Case

Gold (price per troy ounce) $950 $760 $1140Pre-Tax Project Internal Rate of Return (IRR) 19.6% 8.1% 29.6%Pre-Tax NPV at 5% Discount Rate ($ Millions) $279.4 $54.7 $504.1Benefit Cost Ratio at 5% Discount Rate 2.2 1.2 3.1Pre-Tax Payback (years) 4.2 1.2 2.9

After Tax Project Internal Rate of Return (IRR) 15.7% 6.3% 23.4%After Tax NPV at 5% Discount Rate ($ Millions) $191.1 $21.5 $352.4Benefit Cost Ratio at 5% Discount Rate 1.8 1.1 2.5After Tax Payback (years) 4.8 8.6 3.5

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1.3.2 Scope

M3 prepared this feasibility study on behalf of HGM. The purpose and scope of this study wasto report M3s findings as to the economic and technical feasibility of the project. M3s scope ofwork included:

Overall study report project management

Feasibility level engineering design including equipment performance specifications

Development of drawings to describe the project and support the equipment and materialtakeoffs

Solicitation of budgetary equipment and material costs from vendors

Preparation of capital estimates and the master capital cost estimate

Development of processing operating cost estimates

Development of the economic analysis

Review of metallurgical testing

Development of process flow sheets

HGM and its consultants developed:

Geological interpretation and mineral resource estimation

Reserve calculation including ore tons and grade plus waste tons

Mine plans

Mine manpower and equipment requirements

Mine capital and operating cost estimates

Metallurgical testing to support process design and design criteria

Tailing deposition studies and design

Environmental and reclamation studies and environmental permits

Land positions and ownership Water supply and hydrogeological studies

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1.3.3 Property and Location

The Haile project property site is located 3 miles northeast of the town of Kershaw in southernLancaster County, South Carolina (Figure 1.3-1). Lancaster County lies in the north-central partof the state. The HGM property site is approximately 17 miles southeast of the city of Lancaster,

the county seat, which is approximately 30 miles south of Charlotte, North Carolina. It is alsoapproximately 50 miles north east of Columbia, South Carolina.

Figure 1.3-1: Property Location Map

1.3.4 Site Layout

The overall project consists of mine development, overburden storage areas, surface watermanagement, process facilities, ancillary buildings, infrastructure and a tailing storage facility.A simplified layout that was used for the feasibility design can be seen in Figure 1.3-2 andFigure 1.3-3.

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Figure 1.3-2: Overall Site Layout

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Figure 1.3-3: Process Area Site Plan

1.3.5 Infrastructure

The HGM property is situated three miles northeast of the Town of Kershaw in LancasterCounty, South Carolina, USA. The site is roughly one hour south of Charlotte, North Carolina

and one and one half hour north east of Columbia, South Carolina. The proximity to existinginfrastructure reduces project costs because the project is easily accessible, and there is adequatehousing, power, phone, and water. It has the benefit of being bordered by US Highway 601 tothe west and Haile Gold Mine Road to the south, both of which are paved. Natural gas, sanitarysewer, and potable water lines run along Highway 601. Power for the Haile property may beprovided from Duke Energy and/or Lynches River Power Cooperative. The power transmissioninfrastructure is well established, and less than 5 miles of new 44 KVA (Duke) or 69 KVA(Lynches River) service will be required.

High annual average precipitation allows for surface water that comes in contact with miningfacilities to be used for mill and tailing makeup water. Pit dewatering and pit depressurizationwells will provide the remainder of the makeup. A municipal tap is also planned to providefresh/firewater to the project.

1.3.6 Ownership

HGM, a wholly owned subsidiary of Romarco Minerals, Inc. acquired the Haile property fromKinross and another private party in October of 2007. As of December 8, 2010, HGM owned4,027 acres associated with the project, and other land not currently associated with the project.

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HGM owns all land associated with the project fee simple including the surface and mineralrights with no associated royalty.

1.3.7 Geology

The Haile property site is geologically situated in the Carolina Slate Belt, which also hosts theclosed Brewer Gold Mine to the northeast and closed Ridgeway Gold Mine to the southwest.The gold mineralization at the Haile property is found in moderately to steeply-dipping bodieswithin an east-northeast-trending zone. The mineralized zone consists of hydrothermally altered,metamorphosed sediments adjacent to metamorphosed felsic volcanics or volcanically derivedsediments. Gold mineralization is associated with silicification, pyrite, pyrrhotite andmolybdenite.

There are seven areas currently identified that have potentially economic mineralization withinthe mineralized trend. These include Southpit, Ledbetter, Snake, Chase Hill, 601, Champion andSmall.

1.3.8 Mineral Resources and Reserves

The mineral resources at HGM were developed by Independent Mining Consultants, Inc. (IMC)using conventional block model procedures and floating cone pit geometry to determine thecomponent of the deposit that has reasonable prospects of economic extraction. John Marek,P.E. of IMC acted as the Qualified Person for the development of the model and the mineralresource estimate.

This section will describe the block model and will summarize the floating cone that resulted inthe stated mineral resources. The mineral resources as stated in this report have reasonableprospects of extraction by open pit methods. There is additional mineralization at depth at Haile

that could be analyzed for future underground extraction. That material is not included withinthis statement of mineral resources.

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Table 1.3-2: Haile Mineral Resources as of 1 November 2010

Gold Tons Grade ContainedCategory Cutoff oz/t x 1000 Troy Oz/ton Oz x 1000

Measured 0.012 30,624 0.055 1684.3

Indicated 0.012 28,215 0.051 1439.0Measured+Indicated 0.012 58,839 0.053 3123.3

Inferred Resource 0.012 27,496 0.039 1072.3

Notes:Tonnages are short tons of 2000 lbsGrades are in Troy ounces per short tonGold price of $1,200 per troy ounce was applied

Note: The mineral reserves are contained within the mineral resource.

Mineral reserves for HGM were developed from the block model and the feasibility mine plan.The mineral reserve is the total of all proven and probable category mineralization planned forprocessing during the course of the feasibility mine plan. The block model and determination ofthe mineral reserves were completed by IMC, with John Marek, P.E. acting as the qualifiedperson for the calculation. The mineral reserves are summarized in Table 1.3-3. The mineralreserves are included within the mineral resource stated in Table 1.3-2.

Table 1.3-3: Haile Mineral Reserves as of 1 December 2010

Gold Tons Head Grade ContainedRecovGrade Recovered

Category Cutoff oz/t x 1000 Troy Oz/ton Oz x 1000 Troy Oz/ton Oz x 1000

Proven 0.014 21,596 0.064 1,382.1 0.054 1,166.2

Probable 0.014 12,034 0.053 635.7 0.043 515.3

Proven+Probable 0.014 33,630 0.060 2,017.8 0.050 1,681.5

Notes:Tonnages are short tons of 2000lbs

Grades are in Troy ounces per short ton

Mineral Reserve Based on $950 / Troy Ounce Gold Price

1.3.9 Mining

The Haile Gold Mine is planned to be mined using conventional open pit mining methods. Acombination of hard rock and soft rock will be encountered in the deposit during the mining

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process. The majority of the material from the mine will be hard rock which will be drilled andblasted prior to loading.

The mine plan produces 2,555 ktons of gold bearing ore per year for delivery to the process plant(7,000 tpd for 365 days/year). After a one year preproduction period, total material movement

ramps up to 22,100 ktons/year (60,500 tpd) for the first three years followed by 35,000ktons/year (95,900 tpd) for four years.

Mining will utilize 20 ft benches. Drilling and blasting will be required for the hard rock units atHaile. The coastal plain sands will not require blasting. Saprolite will require drilling in orezones for ore control but will require only localized blasting near the bedrock contact.

The major mine equipment that was used as the basis of the study is summarized below:

Unit Initial Fleet for 3 Years Fleet Year 4 and Beyond6 Blasthole Drills 3 515 Cubic Yd Front Loader 2 3

14.4 Cubic Yd Hyd Shovel 1 1100 ton Trucks 14 24

Appropriate mine auxiliary and support equipment is also planned and scheduled. The mineproduction schedule is summarized on Table 1.3-4. The annual mine plan and waste storagedrawings are summarized in Section 1.25 of this document. Quarterly mine plans weredeveloped for the preproduction period and the first 2 years of the mine plan. However, only asubset of the annual plans is presented in this section for brevity.

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Table 1.3-4: Mine Production Schedule

Mine Schedule

Recov Contd Recov Contd RecovYear Cutoff Ore Grade Grade LG Stkp Grade Grade Waste Total Mat

oz/ton Ktons oz/ton oz/ton Ktons oz/ton oz/ton Ktons Ktons

ppQ1 0.017 8 0.025 0.019 18 0.019 0.014 1,904 1,930ppQ2 0.017 29 0.027 0.021 27 0.019 0.015 2,834 2,890ppQ3 0.017 38 0.035 0.028 27 0.018 0.013 5,460 5,525ppQ4 0.017 79 0.092 0.080 27 0.018 0.014 5,419 5,525

yr1Q1 0.017 325 0.091 0.079 55 0.018 0.013 5,145 5,525yr1Q2 0.017 638 0.093 0.080 97 0.018 0.013 4,790 5,525yr1Q3 0.017 638 0.085 0.073 80 0.018 0.013 4,807 5,525yr1Q4 0.017 639 0.076 0.065 91 0.018 0.014 4,795 5,525

yr2Q1 0.019 639 0.076 0.065 102 0.020 0.015 4,784 5,525yr2Q2 0.019 639 0.064 0.054 106 0.019 0.014 4,780 5,525yr2Q3 0.019 639 0.055 0.046 183 0.019 0.014 4,703 5,525yr2Q4 0.019 638 0.054 0.045 185 0.020 0.015 4,702 5,525

3 0.012 2,555 0.075 0.064 88 0.015 0.011 19,557 22,2004 0.017 2,555 0.071 0.061 662 0.018 0.014 30,783 34,0005 0.022 2,555 0.061 0.052 1,366 0.021 0.016 31,079 35,0006 0.014 2,555 0.062 0.053 209 0.016 0.012 32,236 35,0007 0.022 2,555 0.068 0.057 1,527 0.021 0.016 29,918 34,0008 0.010 2,555 0.063 0.054 25,912 28,4679 0.010 2,555 0.074 0.064 6,563 9,11810 0.010 2,555 0.073 0.062 5,209 7,76411 0.010 2,555 0.051 0.042 4,832 7,387

12 0.010 836 0.023 0.018 1,128 1,964Total 28,780 0.066 0.056 4,850 0.020 0.015 241,340 274,970

Note: Tonnages are Dry Short Tons. Schedule Includes Champion Pit Last

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Table 1.3-5: Mill Feed Schedule

Mill Feed ScheduleContd Recov

Year Cutoff Ore Grade Gradeoz/ton Ktons oz/ton oz/ton

ppQ1 0.017ppQ2 0.017ppQ3 0.017ppQ4 0.017yr1Q1 0.017 479 0.082 0.071yr1Q2 0.017 638 0.093 0.080yr1Q3 0.017 638 0.085 0.073yr1Q4 0.017 639 0.076 0.065yr2Q1 0.019 639 0.076 0.065yr2Q2 0.019 639 0.064 0.054

yr2Q3 0.019 639 0.055 0.046yr2Q4 0.019 638 0.054 0.045

3 0.012 2,555 0.075 0.0644 0.017 2,555 0.071 0.0615 0.022 2,555 0.061 0.0526 0.014 2,555 0.062 0.0537 0.022 2,555 0.068 0.0578 0.010 2,555 0.063 0.0549 0.010 2,555 0.074 0.06410 0.010 2,555 0.073 0.06211 0.010 2,555 0.051 0.042

12 0.010 2,555 0.021 0.01613 0.010 2,555 0.020 0.01514 0.010 576 0.020 0.015

Total 33,630 0.060 0.050

Note: 1,719 Ktons in Year 12 come from the lowgrade stockpile. In years 13 and 14, all of the orecomes from the low grade stockpile.Note: Tonnages are Dry Short Tons.

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1.3.10 Metallurgy and Process Plant

Laboratory testing on ore composite samples demonstrated that the mineralization was readilyamenable to flotation and cyanide leaching process treatment. A conventional flotation and

cyanide leaching flow sheet can be used as the basis of process design. The relative lowvariability of flotation test work indicates that the mineralized zones are relatively similar interms of ore grindability, chemical and mineral compositions, and flotation and cyanide leachingresponse.

The data developed in the metallurgical test programs has been used to establish a relationshipbetween overall gold recovery and mill head grade that has been described by an equation andgraph. For example, at a mill head grade of 0.060 opt the recovery equation and graph predicts agold recovery of 83.7%.

The plant will consist of the following major process steps:

Crushing and conveying Stockpile reclaiming

Grinding

Flotation

Regrinding

Carbon in leach (CIL) leaching of flotation concentrate

CIL leaching of flotation tailing

Acid washing of carbon

Stripping of carbon Electrowinning and refining

Carbon regeneration CIL tailing thickening, detoxification and storage

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Figure 1.3-4: Simplified Process Flow Sheet

1.3.11 Tailing Facility

Tailing slurry will be pumped from the mill to a geosynthetic-lined tailing storage facility (TSF).The TSF will be constructed from local materials and utilize the downstream construction

method. Water will be reclaimed from the TSF by pumps on a floating barge. Seepage waterfrom the underdrain collection pond will also be reclaimed. Reclaim water is sent back theprocess facilities for re-use.

1.3.12 Environmental and Permitting

The project is somewhat unique in that it occurs wholly on private land owned or controlled byHGM and does not impact federal/public (BLM or USFS) lands that would be subject toprojected modifications from these surface management agencies. In addition, there is nopotential for the federal government to impose a royalty by an amendment to the 1872 MiningLaw.

Since the property has been mined in the past, a significant amount of background andenvironmental baseline data exists and continues to be collected. Major permits needed includea Mine Operating Permit, 404 Dredge and Fill Permit, Air Quality Permit and NPDESPermits. Permits are expected to be acquired within 12 to 24 months from application.

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1.3.13 Capital Costs

Initial capital costs have been estimated for the Haile Gold project based on equipmentquotations, feasibility level design and material quantities utilizing unit rates from historic data,published sources and local contractors. The estimate includes all evaluated portions of the

project including the process, tailing, and mining facilities. The costs also include pre-production mining, owners costs and contingency. A more detailed breakdown can be found inSection 1.25 of this report.

Table 1.3-6: Initial Capital Costs

($ Millions)

Direct Costs $ 195.86

Indirect Costs $ 33.04

Owners Costs $ 18.98

Contingency $ 27.59

Escalation $ -

Total Project Capital $ 275.47

1.3.14 Operating Cost

The operating and maintenance costs for the HGM operations have been estimated in detail andare summarized by areas of the project. Cost centers include Mine operations, Process Plantoperations, and General and Administration (G&A). Operating costs were determined for atypical year of operations, based on an annual ore tonnage of 2.5 million tons and goldproduction of 133,000 ounces of gold annually. The life of mine unit cost per ore ton is $18.92and the unit cost per ounce of gold produced is $379.27. These figures are broken down as

follows:

Table 1.3-7: Unit Operating Cost

$ per ton ore $ per gold ounce

Mining $9.62 $192.84

Processing $7.67 $153.61

General and Administration $2.26 $45.28

Shipping/Refining $0.17 $3.50

Byproduct (Silver) Credit -$0.80 -$15.96

Total $18.92 $379.27

1.3.15 Economic Analysis

The Haile Gold Project economics were done using a discounted cash flow model. The financialindicators examined for the project included the Net Present Value (NPV), Internal Rate ofReturn (IRR) and payback period (time in years to recapture the initial capital investment).Annual cash flow projections were estimated over the life of the mine based on capital

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expenditures, production costs, transportation and treatment charges and sales revenue. The lifeof the mine is 13 years. The after tax financial indicators based on a 100% equity case aresummarized as follows:

Table 1.3-8: After Tax Financial Indicators at $950 Gold

Before Tax After TaxIRR 19.6% 15.7%

NPV @ 0% $507.6 Million $376.3 Million

NPV @ 5% $279.4 Million $191.1 Million

NVP @ 10% $141.0 Million $78.8 Million

Payback Period 4.2 Years 4.8 Years

Sensitivities were run for seven variables as in Figure 1.3-5. The sensitivity analysis indicatesthat the project is most sensitive to gold price and gold grade.

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Figure 1.3-5: Financial Sensitivities

A further sensitivity analysis was done looking at variable gold prices as shown in Table 1.3-9and Table 1.3-10.

Table 1.3-9: Gold Price Sensitivity Before Tax

GoldPrice NPV @0%

NPV @5%

NPV @10% IRR %

PaybackYears

$1,500 $1,426,095 $929,839 $621,143 47.0% 2.0

$1,400 $1,259,097 $811,577 $533,838 42.3% 2.2

$1,300 $1,092,099 $693,314 $446,533 37.6% 2.4

$1,200 $925,101 $575,052 $359,227 32.7% 2.7$1,100 $758,103 $456,790 $271,922 27.6% 3.1

$1,000 $591,105 $338,528 $184,617 22.3% 3.8

$950 $507,606 $279,397 $140,965 19.6% 4.2

$800 $257,109 $102,004 $10,007 10.7% 7.6

$700 $90,111 -$16,258 -$77,298 4.0% 9.4

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Table 1.3-10: Gold Price Sensitivity After Tax

GoldPrice NPV @0%

NPV @5%

NPV @10% IRR %

PaybackYears

$1,500 $1,015,031 $641,833 $410,600 35.8% 2.5

$1,400 $902,391 $562,409 $352,186 32.5% 2.7

$1,300 $788,914 $482,505 $293,476 29.2% 2.9$1,200 $673,803 $401,191 $233,538 25.6% 3.3

$1,100 $558,413 $319,668 $173,443 21.9% 3.8

$1,000 $439,084 $235,321 $111,290 17.9% 4.4

$950 $376,299 $191,075 $78,778 15.7% 4.8

$800 $186,897 $57,398 -$19,611 8.5% 8.0

$700 $64,579 -$31,995 -$87,507 3.0% 9.6

1.3.16 Project Execution Plan

The proposed project execution plan incorporates an integrated strategy for engineering,procurement and construction management (EPCM). The primary objective of the executionmethodology is to deliver the project at the lowest possible capital cost, on schedule. Primaryobjectives during construction will include safety, quality, and environmental compliance.

Table 1.3-11: Haile Key Pre-Production Milestones

Milestone DateCompletion of the Feasibility Study December 2010

Start Basic Engineering January 2011

Begin Buying Long Lead Equipment March 2011

Begin Construction December 2011

Begin Pre-Production Mining December 2011Mechanical Completion March 2013

Start Up March 2013

1.3.17 Authors Conclusions

The results of the feasibility study indicate that the Haile project is technically feasible. Themining and process methods are typical and do not require any specialized technology. Projecteconomics are favorable when $950/troy ounce gold price is used.

The project is located in a relatively populated region, which greatly favors project execution andoperation. The climate is moderate and the project location is relatively flat. The projectschedule is reasonable. Procurement of long lead mining and processing equipment should beginas soon as possible following receipt of the project approval.

See Section 1.21 for more interpretations and conclusions.

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1.4 INTRODUCTION &TERMS OF REFERENCE

1.4.1 Purpose

This document was prepared in order to provide a technical evaluation consistent in format with

the NI 43-101 standard and to present data and information developed to substantiate technicaland economic viability of the Haile Project in Lancaster County, South Carolina.

This report provides an independent Technical Report, compliant with the Canadian NationalInstrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101).

This report was prepared by M3 Engineering & Technology Corporation (M3) at the request ofHaile Gold Mine Inc, a wholly-owned subsidiary of Romarco Minerals, Inc.:

Romarco Minerals Inc.Brookfield Place,181 Bay, St. Suite 3630

Toronto, ONCanadaM5J 2T3

Phone: 416-367-5500Fax: 416-367-5505

This report is current as of:

February 10, 2010

1.4.2 Sources of Information

This report is based in part on internal company technical reports, previous feasibility studies,maps, published government reports, company letters and memoranda, and public information aslisted in the references section in the conclusion of this report.

1.4.3 Terms of Reference

The important terms used in this report are presented in Table 1.4-1.

Table 1.4-1: Terms and Definitions

Full Name AbbreviationAcid Rock Drainage ARD

AMEC Earth and Environmental, Denver CO AMEC

Carbon-In-Leach CIL

Coastal Plain Sand CPS

Cubic feet ft

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Full Name Abbreviation

Department of Health and EnvironmentalControl

DHEC

Engineering, Procurement and ConstructionManagement

EPCM

Feet ftHaile Gold Mine HGM

High Density Polyethylene HDPE

Inches in

Independent Mining Consultants IMC

M3 Engineering & Technology Corporation M3

Mega Watt MW

Memorandum of Agreement MOA

Net Present Value NPV

Overburden Storage Area OSA

Potentially Acid Generating PAGProbable Maximum Precipitation PMP

Romarco Minerals, Inc. RMI

Specific gravity S.G.

Tailing Storage Facility TSF

Temperature in Degrees Fahrenheit F

Troy ounce oz

Troy ounces per short ton opt

Short tons per year t/y

1.4.4 Units of Measure

This report uses English Units expressed in short tons (2,000 pounds), feet, and gallonsconsistent with US standards. The monetary units are expressed in US Dollars.

1.5 RELIANCE ON OTHER EXPERTS

M3 relied upon contributions from a range of technical and engineering consultants as well asHGM. M3 has reviewed the work of the other contributors and finds this work has beenperformed to normal and acceptable industry and professional standards. In conclusion, M3 isnot aware of any reason why the information provided by these contributors cannot be relied

upon.

An independent verification of land title and tenure was not performed. M3 has not verified thelegality of any underlying agreement(s) that may exist concerning the licenses or otheragreement(s) between third parties. Likewise, HGM has provided data for and verified waterrights, land ownership, and claim ownership.

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A draft copy of the report has been reviewed for factual errors by HGM. Any changes made as aresult of these reviews did not involve any alteration to the conclusions.

1.6 PROPERTY DESCRIPTION AND LOCATION

1.6.1 Property Location

The Haile property site is located 3 miles northeast of the town of Kershaw in southern LancasterCounty, South Carolina Lancaster County lies in the north-central part of the state. The HaileGold Mine is approximately 17 miles southeast of the city of Lancaster, the county seat, which isapproximately 30 miles south of Charlotte, North Carolina. The approximate geographic centerof the property is at 34 34 46 N latitude and 80 32 37 W longitude. The mineralized zonesat Haile lie within an area extending from South Carolina state plane coordinates 2136300 E to2142300 E, and from 573700 N to 576300 N, (1927 North Datum).

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Figure 1.6-1: General Location Map of the Haile Gold Mine

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1.6.2 Ownership

In October 2007, Haile Gold Mine Inc. (HGM), a wholly owned subsidiary of Romarco MineralsInc., acquired the Haile property from Kinross (direct purchase) and a private third party(lease/purchase) of additional land bringing its average total acreage to 1,483 acres. HGM

assumed Kinross post-closure monitoring obligations and liability for any future impacts. Uponclosing the transaction with Kinross and the private third party, HGM began a confirmationdrilling program to bring the historic resource into a N1 43-101 compliant standard.

Since October 2007, HGM has exercised its right to convert the lease/purchase with the privatethird party to a Fee Simple purchase. HGM has an on-going and strategically aggressive landacquisition program.

HGM provided an inventory of property that is owned within the project boundary as shown inTable 1.6-1.

Table 1.6-1: HGM Controlled Land within Permit Area as of December 8, 2010

PROPERTY ACRES TAX MAP#

1 HGM-1 255.35 140-01

2 HGM - BLACKWELL 272.78 141-09

3 HGM - HINSON 89.79 136-38

4 McDOWELL 40.9 141-09.01

5 JOHNSON TRACT (CHAMPION) 233.66 141-07

6 HILLTOP 1 TRACT 14.99 140-02

7 SMALL TRACT 174.84 141-08

8 LINEBERGER (SAND PIT) 51.99 136-33.01-33.02-33.03

9 FAULKENBERRY 7.83 140-20.00 - 140-18.00

10 BOWATER TRACT-1 749.26 136-37

11 BOWATER TRACT-2 (HILLTOP 2) 111.58 136-37

12 BOWATER TRACT -3 4.61 136-3713 OUTEN 2.31 140-05

14 R. FAULKENBERRY 1.83 140-21

15 W. PAYNE 3.34 140-19

16 CLIMEN 1.05 136-66

17 BLACKWELL 409.72 119-14.05, 14.00, 14.02, 14.03

18 BLACKWELL 4.92 136-33.10

19 BLACKWELL 117.18 119-14.01

20 CLYBURN 752.31 119-06

21 R ROBERTS W/HOME 4.34 140-10.00,11.01

22 T RAY 42.16 136-36.00

23 K Bartell W/HOME 1.32 136-15.01

24 J GORDON 22.17 136-36.05

25 J POSTON W/HOME 1 136-33.0426 D NAVLYT (FANNING) 1.5 136-33.04

27 W BARTELL W/HOME 2.29 136-15.00

28 L FISHER W/HOME 6 136-31.04

29 GUARDIAN FIDELITY MORTGAGE 1.05 136-67

30 J SCOTT W/HOME 0.36 136-14

31 CULVERN 260.31 136-39

32 LUBAS 158.19 135-13

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PROPERTY ACRES TAX MAP#

33 J. CATOE 0.76 136-06

34 T. HUDSON 3.04 119-03

35 T. HUDSON 0.56 119-05

36 J. SCOTT 11.1 136-14.06

37 R AUTRY W/HOME 3.19 119-4.00

38 P. FAULKENBERRY 2 136-1239 P. FAULKENBERRY 10.78 136-14.07

40 J. BRAHAM 2.41 136-14

41 T. ROBINSON 2 136-05

42 J. MONTGOMERY 16.19 136-09.01

43 E. SCOTT 15.03 136-14.01

44 S. SCOTT 4.43 136-14.02

45 W. BARTELL 9.22 136-31

46 W. BARTELL 55.13 136-32

47 M. ROBERTS 1 136-33.05

48 S. ROLLINGS 2.56 136-14.03

49 S. ROLLINGS 12.9 136-14.05

53 PATRICIA LUGO 4.98 136-35.01

Parcel is not reflected by county GIS records56 R. HYPES 22.72 136-10

64 B.L. STROUD 21.5 140-04

65 B.L. STROUD 22.5 140-24

66 B.L. STROUD 2 140-25

67 B.L. STROUD 0.4 140-03

Total Acreage 4027.33

An additional 245 acres are under contract within the permit boundary as of December 8, 2010.HGM owns all land fee simple including the surface and mineral rights with no associatedroyalty.

HGM owns additional land that is not associated with the project.

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1.7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, ANDPHYSIOGRAPHY

1.7.1 Accessibility

The Haile property is accessible by taking U.S. Highway 601 northeast from the town ofKershaw for approximately 2 miles, then proceeding approximately 0.5 miles east on Haile GoldMine Road (paved county highway 188) to the mine entrance. The entrance is on the north sideof the road. A network of maintained, unpaved dirt roads provides access to several parts of theproperty, and is used regularly by Haile Gold Mine staff and operation contractors.

1.7.2 Climate

This portion of South Carolina has a humid subtropical climate. Summers are hot and humidwith daytime temperatures averaging 85F to 95F. Winters are mild and wet, but overnighttemperatures can be below freezing. Average annual precipitation approaches 50 inches whileannual evaporation is only 30 inches. Precipitation is abundant throughout the year with March

being the wettest month. Snowfall annually is often insignificant and averages less than 3 inchesper year. Regionally, South Carolina averages approximately 50 days of thunderstorm activityand 14 tornadoes per year.

1.7.3 Local Resources and Infrastructure

Local resources (labor force, manufacturing, housing, etc.) and infrastructure are already in placeand available for the operation of the Haile project. Several small and modest-sizedcommunities exist in every direction from and in close proximity to the Haile project area.Equipment and sources of both logistical and professional expertise can be obtained from themajor cities of Charlotte, N.C., and Columbia, S.C., which are both within one hour travel. More

than one large industrial contractor is within close proximity to the site and can provide a skilledworkforce for the construction project.

Power is available in the area via an existing 44 kV transmission grid or a 69 kV transmissiongrid within close proximity to the project.

1.7.4 Physiography

The Haile Gold Mine and its surroundings occur within the Sand Hills sub-province of thePiedmont physiographic province of the southeastern United States. This province trends fromsouthwest to northeast and is bounded by the Coastal Plain to the southeast and the southernAppalachian Mountains to the northwest. Gentle topography and rolling hills, dense networks ofstream drainages, and white sand to red-brown lateritic soils characterize the Sand Hills subprovince.

The elevation of the property ranges approximately from 400 ft (122 m) to 550 ft (168 m) abovemean sea level. The topography is the result of dissection by the perennial, southwest-flowingHaile Gold Mine Creek and by its intermittent, southeast and northwest-flowing tributaries. Thesurface ground slopes within the drainages are gentle to moderate (approximately 9 to 13%) and

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the slopes above the drainages are gentle to nearly flat (less than 1%). Haile Gold Mine Creekenters the southeast-flowing Little Lynches River at a point approximately 1 mile (1.6 km)southwest from the mine site. The property is heavily wooded with both pine and hardwoodforests. Pine timber harvesting occurs frequently in and around the property area as eachharvestable tract matures.

1.8 HISTORY

Gold was first discovered in 1827 near Haile by Colonel Benjamin Haile, Jr. in the gravels ofLedbetter Creek (now the Haile Gold Mine Creek). This led to placer mining and prospectinguntil 1829, when lode deposits at the Haile-Bumalo pit site were found. Surface pit andunderground work continued at the Haile-Bumalo site for many years. In 1837, a five-stampmill was built on site (Newton et al., 1940). Gold production and pyrite-sulfur mining for gunpowder continued through the Civil War. General Shermans Union troops invaded the area andburned down the operations near the wars end (Culvern, 2006).

In 1882, a twenty-stamp mill was constructed by E.G. Spilsbury and operated continuously untila fatal boiler explosion killed the mine manager in 1908. During that time, Capt. Adolph Thiesdeveloped the Thies barrel chlorination extraction process on site and improved gold recoveryfrom Haile sulfides (Pardee & Park, 1948). During this 26-year operation period, mining grew toinclude the Blauvelt, Bequelin, New Bequelin, and Chase Hill areas. In 1913, an attempt tooperate a cyanide plant to extract gold from mine tailings turned out to be unsuccessful. Pyriteused to produce sulfuric acid was mined at Haile from 1914 to 1918 (Newton et al., 1940).

From mid-1937 to 1942, larger-scale mining was undertaken on site by the Haile Gold MinesCompany. The property then consisted of owned or leased ground totaling about 3,300 acres(1,335 hectares). The operator was financed out of New York by the Barlowe Corporation(Newton et al., 1940). Most of the main pits were mined to the 150-ft level with some

underground operations at Haile-Bumalo reaching the 350-ft level (Pardee & Park, 1948). Thisperiod was also significant because the Red Hill Deposit was discovered by crude inducedpolarization techniques next to the Friday pyrite diggings (Newton et al., 1940). This fairly largeoperation was shut down by presidential decree (L208) in 1942 because of World War II. Bythis time, the Haile Mine had produced over US$6.4 million worth of gold (in 1940 dollars)(Newton et al., 1940).

From 1951 to the present, the Mineral Mining Company (Kershaw, South Carolina) has minedMineralite from open pits around the Haile property. This industrial product is a mixture ofsericite, kaolinite, quartz, and feldspar and is used in manufacturing insulators and paint base.

In 1966, Earl M. Jones conducted exploration work in the area and eventually interested CyprusExploration Company in the project. Cyprus worked Haile from 1973 to 1977. Following this,many companies explored the area around the Haile mine, including Amselco, Amax, Nicor,Callaghan Mining, Westmont, Asarco, Newmont, Superior Oil, Corona, Cominco, AmericanCopper and Nickel, Kennecott, and Hemlo.

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Between 1981 and 1985 Piedmont Land and Exploration Company (later Piedmont MiningCompany), explored the historic Haile Mine and surrounding properties. Piedmont mined theHaile deposits from 1985 to 1992, producing 85,000 ounces of gold from open pit heap leachoperations that processed oxide and transitional ores. New areas mined by Piedmont includedthe Gault Pit (next to Blauvelt), the 601 pits (by the US 601 highway), and the Champion Pit.

They also expanded the Chase Hill and Red Hill pits and combined the Haile-Bumalo zone intoone pit. They also discovered the large Snake deposit sulfide gold resource and mined its smalloxide cap. Piedmont extracted gold ores from a mineralized trend a mile long, from east to west.

In June of 1991, Amax signed an agreement to evaluate the site to determine if it should enter ajoint venture on the Haile property. During that evaluation period, core drilling that steppednorth of the Haile-Bumalo area resulted in the discovery of the new sulfide resource at the Millzone (under the old 1940s mill). With the satisfactory verification of Piedmont data, Amax andPiedmont entered into a Joint Venture agreement and established the Haile Mining Company(HMC) in May 1992.

From 1992 to 1994, HMC completed a program of exploration/development drilling, propertyevaluation, mineral resource estimation, and technical report preparation. During this period, theLedbetter resource zone was discovered under a mine haul road. At the end of the Amax / HMCprogram in 1994, the gold reserve was stated by HMC as 780,000 ounces of gold containedwithin 8,736,000 tons with an average grade of 0.089 opt Au. Because of unfavorable economicconditions at the time, Amax did not proceed with mining, but began a reclamation program tomitigate ARD conditions at the site.

Kinross acquired Amax in 1998, assumed Amaxs portion of the Haile joint venture, and laterpurchased Piedmonts interest. Because Haile was a low priority compared to larger and moreprofitable prospects, Kinross decided not to reopen the mine but did continue theclosure/reclamation effort. The closure/reclamation has proceeded through the present and has

been considered successful.

Haile Gold Mine, Inc. (HGM), a subsidiary of Romarco Minerals Inc., acquired the Haileproperty from Kinross in October of 2007 and began a confirmation drilling program in late2007. HGM completed the confirmation drill program in early 2008 and began infill andexploration drilling. The drill program was accelerated in early 2009 with a major reversecirculation drilling program. That program has been continued into 2010. Data from the drillprogram that was available as of September 30, 2010 has been used in this update of the mineralresource estimate.

1.9 GEOLOGICAL SETTING

This section has been written by James Berry, Chief Geologist at the Haile Gold Mine. JohnMarek of IMC has reviewed this text and has sufficient comfort with the information to act as theQualified Person under NI 43-101.

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1.9.1 Regional Setting

The north central portion of South Carolina is geologically situated in the Carolina terrane. TheCarolina terrane consists of the Carolina slate belt, the Charlotte belt, the Kiokee belt and theKings Mountain belt. This exotic, volcanic arc terrane formed adjacent to the African continent

and was accreted to the North American craton during the mid to late Paleozoic (Hatcher et al.,2007). The Haile gold mine is located within the Carolina slate belt.

The Brewer gold mine is located approximately ten miles to the northeast of the Haile mine andthe Ridgeway mine is located thirty miles to the southwest. All of the deposits are hosted in asimilar geologic setting within the Carolina slate belt. The Haile, Ridgeway, Brewer, and BariteHill gold mines are hosted at the contact between metamorphosed volcaniclastic andmetamorphosed sedimentary rocks of Late Proterozoic or Early Cambrian age. This volcanic arcassemblage was deposited in a back arc or fore arc setting. The metamorphosed volcaniclasticand interbedded epiclastic lithologies are called the Persimmon Fork Formation and themetamorphosed sedimentary dominated sequence is the Richtex Formation (Maher et al., 1991).The Persimmon Fork Formation was derived from volcanic material that contains a continuousrange of compositions from basaltic to dacitic and a transitioning geochemical signature fromtholeiitic to calc-alkaline (Shelley, 1988), indicating a mature arc setting on an older arcsequence or thinned continental crust. The Carolina terrane was metamorphosed to amphibolitegrade conditions in the Charlotte and Kiokee belts and to greenschist grade within the Carolinaslate belt (Secor and Snoke, 2004). Dennis and Wright (1997) have possibly constrained thetiming of this metamorphic/deformational event between 550 and 535 Ma based on the presenceof deformational fabrics within the Longtown granite and the absence of foliation within theMean Crossroads igneous complex. They also propose that this early deformational eventresulted from intra-arc collision. The extent of deformation during the Alleghanian orogeny (320to 270 Ma) within the Carolina terrane is localized to mylonitic zones with normal and dextralstrike-slip sense of shear (Secor et al., 1986). The Modoc zone and Kiokee belt represent theprevious features but are located to the southeast of the Haile mine area. Post-tectonic graniteswere intruded within the Carolina terrane at the end of the Alleghanian orogeny. These graniteshave variably developed contact metamorphic aureoles. Alleghanian aged granites are exposedto the northeast and west of the HGM property. Intermediate dikes of unknown age andMesozoic diabase dikes intrude the Carolina terrane. The intermediate dikes were emplaced postdeformation but their age remains uncertain. The diabase dikes were produced when NorthAmerica rifted from Africa during the Mesozoic. Deep erosion and extensive weathering wasdeveloped within the region as a result of near tropical, humid paleo-environment. The intensityof this weathering event has significantly altered the original composition and textures of therocks. Regional submersion during the Cretaceous resulted in the deposition of kaolinite bearingsands above the saprolites. Continental uplift and regression of the Atlantic have led tocontinued and ongoing erosion.

Figure 1.9-1 (after Feiss and others, 1993) shows the configuration and the gold deposit locationswithin the Slate Belt where the Slate Belt is part of the Carolina terrane which includes theCharlotte-Kings Mountain belts on the northwest and Charleston-Spring Hope terranes on thesoutheast (Horton et al., 1989). Patterned areas in the Slate Belt are underlain by metavolcanic-and metavolcaniclastic-dominated units, while areas of metasedimentary rocks are unpatterned

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(Triassic rift basins not shown). Generalized slate belt stratigraphic columns, (1) eastern Georgia(after Whitney et al., 1978), (2) central South Carolina, and (3) central North Carolina (afterButler and Secor, 1991), are not to scale. Producing gold mines in South Carolina and majormineral districts mentioned in the text are: BH Barite Hill mine and Lincolnton-McCormickdistrict, R Ridgeway mine, H Haile Gold mine, B Brewer mine, GH Gold Hill district, C

Cid district.

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Figure 1.9-1: Gold Deposit Locations within the Carolina Slate Belt Local G

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1.9.2 Lithology

The Persimmon Fork and Richtex Formations generally strike northeast-southwest and dipmoderately to the northwest at Haile. The Persimmon Fork and the Richtex Formations weredeposited in an arc related environment and are known to be complexly folded with local

shearing. The metamorphism has obscured some of the primary depositional or volcanic texturesmaking the exact geologic history difficult to interpret. These units are crosscut by northwest-trending, Triassic to Jurassic age diabase dikes. Saprolite of variable thickness has developedwithin the crystalline rock. The bedrock and saprolite are overlain by Coastal Plain sediments.Figure 1.9-4 is a schematic geologic map of the Haile property reflecting bedrock pattern underthe Coastal Plain sand and saprolite.

1.9.2.1 Metasedimentary Unit

The Metasedimentary Unit is the primary host rock for mineralization and is interpreted to bepart of the Richtex Formation. Alternatively, the Metasedimentary Unit could be interbeddedsediments within the upper part of the Persimmon Fork Formation. The unit is characterized bythin, alternating rhythmic bands of silt, clay, and sand, which are metamorphosed into a finelybanded phyllitic metasiltstone with a poker chip appearance. The Metasedimentary Unit isgenerally well foliated and crenulation surfaces are common. When strongly mineralized, themetasiltstone is highly silicified and has a pale, steel gray color. The unit often contains strongmetamorphic cleavage, and is colored light gray, green, tan, or brown. When weathered the unitis very light gray or pink. Laminae and bedding are often folded, and sometimes disrupted bypassive-slip shearing or dissolution. The mineral composition is quartz, white mica (up to 50percent), pyrite (generally less than 10 percent), pyrrhotite, and chlorite, with lesser amounts ofbiotite and calcite. The unit contains lenses of wackestones, sandstones, and conglomerates thathost clasts of volcanic rock or siltstone. The coarser clastic units are poorly sorted and less likelyto be as strongly foliated as the siltstones. The coarser grained lithologies of the

Metasedimentary Unit exhibit cleavage development and flattening of clasts.

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Figure 1.9-2: Photo of Unmineralized Metasediments

1.9.2.2 Metavolcanic Unit

The Metavolcanic Unit represents the Persimmon Fork Formation, and includes felsic volcanicrocks that are rhyodacitic to andesitic in composition. The unit is generally buff, gray, white, orgreen in color and is distinctive due to the lack of bedding and the presence of feldspar clasts.Albite, quartz, white mica, biotite, and chlorite are the dominant mineralogy and the unit locallycontains calcite and epidote. The unit is more massive in appearance than the adjacentmetasediments, but has a well-developed, penetrative cleavage. The Metavolcanic Unit containsvariable amounts of sub-rounded albite grains in a quartz-mica matrix. Portions of this unitcontain poorly sorted, rounded to angular volcanic clasts. Overprinting of primary textures byalteration, mineralization, metamorphism, and weathering events has made interpretation of thisunit difficult. The textures present within the Metavolcanic Unit indicate that it is syneruptivevolcaniclastic sediment although pyroclastic flows and shallow intrusives cannot be ruled out.Uranium-Lead weighted age averages from zircons in the metavolcanic units have yieldedcrystallization ages of 553 +2 Ma (Ayuso and others, 2005). A portion of the spot zircon ages insome samples are younger and may be attributed to later metamorphic events.

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Figure 1.9-3: Metavolcanic Unit

1.9.2.3 Mafic Undifferentiated Dikes

These dikes intrude the previous units, are medium to fine-grained with porphyritic, spheroidalor mottled texture and are sometimes strongly altered. The dikes are gray, buff, tan, and green incolor. Below the saprolite zone, the dikes can contain biotite, plagioclase, clay, chlorite, andcarbonate. Some of the dikes contain distinctive biotite phenocryts and are lamprophyric incomposition. These dikes can either trend with the foliation or normal to it. These dikes are notfoliated and are post tectonic and therefore they are possibly related to the Alleganian intrusiveactivity or are related to the Mesozic rifting event.

1.9.2.4 Mesozoic Diabase Dikes

The diabase dikes are basaltic in composition, medium- to fine-grained, dense, black, green, orbrown in color, magnetic, and can have talc vein fillings. These dikes can have narrow chilledmargins and cause local contact metamorphism in the intruded rock. Diabase dikes might beassociated with earlier dikes in the same structural zones. The mafic undifferentiated dikes couldbe an early or later phase of the diabase dikes. The Mesozoic dikes trend north-northwest

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throughout the Carolina terrane and generally have steep dips. Large amounts of displacementare not seen across the diabase dikes and some dike trends consist of subparallel sets of dikes.

1.9.2.5 Saprolite

Saprolite is thick, structureless, unconsolidated, kaolin-rich, and red-brown to white residuumfrom weathering of country rocks. Saprolite development is usually thickest in near-surfaceoccurrences of metavolcanic rocks and thinnest in the silicified metasedimentary lithologies.

1.9.2.6 Coastal Plain Sand

The Cretaceous Middendorf Formation can have thicknesses up to 75 feet on the HGM property,generally thinning to the west. The upper layer is clean, tan, quartz sand; the middle layer iswhite to red sand with some clay, while the lower contact is iron oxide-cemented coarse graveland sand. The lower portion sometimes contains several inches to 2 feet thick sections of red-brown ferricrete. The ferricrete consists of iron-oxide cemented quartz vein fragments andangular sand clasts. Ferricrete cementation is sometimes sub-parallel to bedding indicating that

is related to groundwater fluid movement.

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Figure 1.9-4: Schematic Geologic Map of Haile Property, May 2009

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1.9.3 Structure

Deformation of the rocks at Haile has created a structurally complex deposit. Penetrative strainis present within all of the Late Proterozoic to Early Cambrian aged units. This deformationmanifests itself as spaced to well-developed foliation, tight to isoclinal folding, and local

shearing. The foliation surface results from alignment of mica minerals and consequently, rocksthat are more micaceous often have better developed foliation. The more massive portions of thevolcaniclastic unit are less foliated but micas within them are generally aligned. The foliation asmapped and taken from oriented core generally strikes northeast and dips moderately to thenorthwest. Bedding is more variably oriented than the foliation but commonly strikes east-northeast and dips to the northwest. Tight to isoclinal folds are present at the thin section,outcrop, and map scale. Most of the mapped folds axes have shallow to moderate plungestowards the northeast or east. Plunge reversals are also present as well as folds that plungedown-dip to the northwest or north. Many of the folds are asymmetric with moderately dippingnorthwest limbs and steep to overturned southeastern limbs. Shear textures have been observedin thin section, outcrop, and may be present at the map scale. Observed shear textures include

pressure shadows, passive-slip planes, ribbon quartz along slip planes, mica fish, andanastomozing foliation surfaces. These features indicate that shearing would have occurred inthe ductile regime. Small scale, brittle-offsets are observed in the folded units and are parallel tothe axial planar foliation. Indicators of brittle deformation such as slicken-sides are only rarelyobserved and do not show substantial offset of the major units.

Lithologic contacts encountered during drilling and mapping at Haile indicate that the deposit issituated within a large scale antiform that plunges shallowly to the northeast. This general patternis complicated by lateral facies changes and interbedding of the units. To date major shear offsetsand large scale shear structures have not been encountered.

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Figure 1.9-5: Folded Metasediments

1.10 DEPOSIT TYPES


Several gold deposits are located along a northeasterly trend that extends from eastern Georgia toVirginia. Many of these deposits are located at or near the contact between felsic volcanics andsedimentary dominated sequences. Various metal associations and mineralization styles indicate

that this is a complex metalogenic province. Brewer has many features of an acid-sulfatemineralization system such as the presence of aluminosilicates, topaz, and enargite. Goldmineralization at Barite Hill contains the assemblage of pyrite-chalcopyrite-galena-sphalerite andis characteristic of a submarine, high-sulphidation volcanogenic massive sulfide deposit. Haileand Ridgeway, located 30 miles to the southwest, are similar in that the mineralization is hostedwithin silicified siltstones. Both deposits contain molybdenite and the mineralization correlateswith anomalous silver, arsenic, antimony, molybdenum, and tellurium.

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The genesis of Haile and Ridgeway are quite controversial and both deposits have been proposedto have been formed by conflicting models. This controversy has been exacerbated by poorexposures, overprinting deformation, metamorphism, and intense weathering. Submarine hotsprings have been suggested for the gold mineralization by several geologists (Worthington andKiff, 1970; Spence et al., 1980; and Kiff and Spence, 1987). Foley et al. (2001) and Ayuso et al.

(2005) have presented additional evidence in support of this model which include geochemistryof sulfide phases and geochronology. The exhalative model stipulates that gold depositionoccurred when black smokers on the sea floor fumed out silica, gold, and sulfide bearing fluidsand the minerals precipitated in a wide area over a uniform seafloor. The precipitated mineralswere buried by later sedimentation. The resulting mineral deposits are typically classified asbeing stratiform and lenticular in shape, and the concentration of mineralization dissipates awayfrom the source.

Alternatively, several workers have proposed the mineralization is structurally controlled andwas caused by deformation. Tomkinson (1990) proposed that shearing was responsible for themineralization at Haile and Ridgeway. This model invokes shears as the conduit for focusing

gold bearing fluids into the metasiltstones. Drops in pressure during faulting are speculated to beresponsible for gold precipitation. Nick Hayward (1992) proposed that folding of the phyllitescontrolled the gold mineralization. This genetic model proposes that gold was emplaced withinthe dilational zones of fold hinges during deformation.

Gillon et al. (1995) proposed a model which invoked both early mineralization andremobilization during deformation. OBrien et al. (1998) proposed that the deposits weregenerated during the Neoproterozoic by the arc related volcanic activity in a hydrothermalsystem. This is support by the close spatial associations between Haile and the felsic volcanicrocks. Pressure shadows around pyrite grains within the mineralized zones, folded mineralizedzones, and flattened hydrothermal breccias indicate that the mineralization is pretectonic andrules out that the mineralization is related to deformation as proposed by Tomkinson andHayward. Hydrothermal breccias containing well bedded clasts, silicification fronts cross-cutting bedding, and multiple phases of silicification indicate that the mineralization is postdepositional and invalidate the submarine hot springs or exhalative model.

1.11 MINERALIZATION


1.11.1 General Characteristics

The gold mineralization at the Haile property occurs along a trend of moderately- to steeply-dipping ore bodies within a regional corridor which runs from the west-southwest (WSW) to theeast-northeast (ENE). The corridor is approximately 3,500 ft (1,067 m) wide [NNW to south-southeast (SSE)], over 2 miles (3.4 km) long (WSW to ENE). Most of the mineralization atHaile is restricted to the laminated, metamorphosed, siltstone of the Richtex Formation. The

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gold mineralized zones within the laminated metasediments can vary in distance from themetavolcanic contact, and can appear at different stratigraphic levels within the metasediments.

The gold mineralization is disseminated and occurs in silica-rich, pyrite-pyrrhotite bearingmetasediments. Alteration in the

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